JGBs gain ahead of August unemployment rate, industrial production; host of 2-tier data in focus

Japanese government bond prices gained during late Asian session Thursday ahead of the country’s unemployment rate and industrial production for the month of August, scheduled to be released today by 23:50GMT respectively. Also, a host of 2-tier economic data are being awaited by investors later in the day, for added direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, slipped 1/2 basis point to 0.120 percent, the yield on the long-term 30-year note fell nearly 1-1/2 basis points to 0.898 percent and the yield on short-term 2-year remained tad lower at -0.112 percent by 05:15GMT.

Further, market-watchers clearly zoomed in on the recent FOMC decision to raise its fed fund rate by 25bps to a range of 2–2.25 percent, amid dropping language saying that “the stance of monetary policy remains accommodative”.

The latest FOMC quarterly projections also indicated an upward revision of GDP growth to 3.1 percent (from 2.8 percent) and 2.5 percent (from 2.4 percent) into 2018 and 2019, respectively, while the dot plot chart indicated a potential one more rate hike into end 2018, three more hikes into 2019 and one increase into 2020.

Meanwhile, the Nikkei 225 index slipped 0.49 percent to 23,896.00 by 05:20GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 64.52 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex